Investing in antiques - any opinions please?

Sapphire · 8 September 2006 at 10:29AM

I wondered what everyone's view on this was. Currently many antiques seem to be out of fashion because of the spin on 'post-modernism' and the trend to buy today/dispose of tomorrow when a new fashion comes in.

I think this fashion will change in the future, and also that some categories of object never really go out of fashion for discerning collectors. For this reason, it seems to me that this is a good time to hunt for and buy certain things. I know this is a large area, but some parts of it are (IMHO) safer to invest in than others. (For instance, I would be wary about going into paintings as an investment.)

I believe that antiques and collectibles are also not taxed when you come to sell them if you hold them as personal possessions (but not sure about this), and that they are not counted in as assets for benefits purposes - useful, for instance, for someone who encounters serious health problems and needs to take advantage of benefits.

I've noticed that the things I've bought over the years seem to have appreciated in value. Added to this is the pleasure of owning things you like (I would only buy things I like in this way, things that I would ideally not want to sell). I know it's to a certain extent subjective, but I really feel there are certain areas that will only go up in value.

I'm not suggesting that you should put all of your savings/investment money into this area, but that you could perhaps use a small proportion of it in this way . . . :cool:

N.B. Having invested in OICS a few years back (Fidelity SS and European) and lost money, I am extremely wary of investing in shares, especially bearing in mind the high charges. That really only leaves savings/ISAs, from which one doesn't get much of a return.

Contains_Mild_Peril · 8 September 2006 at 10:36AM

If I tried that, I'd finish up keeping my antiques after I'd had them for a few years and got used to having them around!

ReportInvestor · 8 September 2006 at 12:01PM

This link is a bit out of date (;)), but there are some useful contact addresses and phone numbers if you decide to pursue your interest further.

Antiques - IA thread

Sapphire · 8 September 2006 at 12:21PM

Contains_Mild_Peril wrote:

If I tried that, I'd finish up keeping my antiques after I'd had them for a few years and got used to having them around!

That's what I'm afraid of.

Sapphire · 8 September 2006 at 12:22PM

ReportInvestor wrote:

This link is a bit out of date (;)), but there are some useful contact addresses and phone numbers if you decide to pursue your interest further.

Antiques - IA thread

I've already started (though I'm not going to engage in it in a big way!). Many thanks for the link - very useful!

shiredeon · 8 September 2006 at 3:23PM

It is good and i have made a considerable sum from doing so, what i would say is only collect perfect examples of very desirable things, large quantities of ok'ish antiques are very succeptable to trends and current fashions and can end up worth less than you paid where'as your average van gogh tends to hold it's money if you see what i mean, you then have the problem that i had in as much as they become a liability, i never insured mine and worried about being robbed or the house burning down.

Sapphire · 8 September 2006 at 4:08PM

shiredeon wrote:

It is good and i have made a considerable sum from doing so, what i would say is only collect perfect examples of very desirable things, large quantities of ok'ish antiques are very succeptable to trends and current fashions and can end up worth less than you paid where'as your average van gogh tends to hold it's money if you see what i mean, you then have the problem that i had in as much as they become a liability, i never insured mine and worried about being robbed or the house burning down.

There are areas that I like and that aren't susceptible to fashion - they do tend to be fairly expensive, though. (However, I won't be collecting any Van Goghs!) When it comes to damage, I would agree that one should only collect perfect examples - although if an object is exceptionally rare but damaged it could still be pretty valuable.

I know what you mean about antiques being a liability. I'll definitely have to have a burglar alarm again, and to think of insuring items that wouldn't be covered under a standard home contents policy.

If you don't mind saying what you collect on an open forum, I'd be really interested to know (but I will quite understand if you'd rather not say).

shiredeon · 8 September 2006 at 4:22PM

Not at all as i sold them, i used to collect antigue guns, initially i collected any old thing but ended up with a passion for british military flintlocks which aren't the most attractive but very desirable, for instance a baker rifle as used by sharpe on the tele i bought 10 years ago for £900 i sold for £2500, mind you that was 5 years ago and if i still had it i'd make £4000 plus, so if you pick the right thing who knows.cheers.

Sapphire · 8 September 2006 at 4:27PM

shiredeon wrote:

Not at all as i sold them, i used to collect antigue guns, initially i collected any old thing but ended up with a passion for british military flintlocks which aren't the most attractive but very desirable, for instance a baker rifle as used by sharpe on the tele i bought 10 years ago for £900 i sold for £2500, mind you that was 5 years ago and if i still had it i'd make £4000 plus, so if you pick the right thing who knows.cheers.

Yes, guns are supposed to be a good area to collect (though I wouldn't collect them myself). You seem to have done really well - and it must have taken a lot to part with your collection! Thank you for sharing your experience.

Debt_Free_Chick · 8 September 2006 at 4:46PM

I think that buying antiques is little different to buying shares - those shares that you want for capital growth, rather than a good dividend yield.

In each case, you are looking for something that the market believes is undervalued i.e. you can assess that the real, future value of the item is much more than the value that other buyers are placing on the item.

This needs lots of research. You can't simply assume that all antiques bought today will sell for more in 5, 10 or 30 years time. Antiques are "fashionable". Twenty or so years ago, you couldn't give Clarice Cliffe away. Now ... you have to pay over the top just to own a piece and it's probably not worth it, if you want a real investment (as you now have to pay a premium, as so many people are trying to get on the bandwagon).

What you need to do is to spot what will be in demand in x years time, but which is currently viewed as "junk". So you buy it cheap now and sell it for a fortune in a few years time when everyone wants it. What is it? Well ... who knows?

Personally, I put it at a higher risk than buying shares. At least with shares you can take some calculated risk as there is financial data to interpret. Antiques seem to be priced on sentiment alone.

Serious suggestion .... watch Flog It!

Debt_Free_Chick · 8 September 2006 at 4:50PM

Sapphire wrote:

Yes, guns are supposed to be a good area to collect (though I wouldn't collect them myself).

For many, you need to hold a Gun License. For some, you need a Firearms Certificate ... it really depends on the gun.

And you need to compete with the likes of Holland & Holland who buy old stuff to sell on at extortionate prices to well-heeled clients

Investing in antiques - any opinions please?

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free